Critical Survey: Axos Financial (NYSE:AX) vs. Fifth District Savings Bank (NASDAQ:FDSB)

Fifth District Savings Bank (NASDAQ:FDSB) and Axos Financial (NYSE:AX) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Fifth District Savings Bank and Axos Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fifth District Savings Bank	0	0	0	0	0.00
Axos Financial	0	2	4	0	2.67

Axos Financial has a consensus price target of $84.17, suggesting a potential upside of 26.21%. Given Axos Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Axos Financial is more favorable than Fifth District Savings Bank.

Profitability

This table compares Fifth District Savings Bank and Axos Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fifth District Savings Bank	N/A	N/A	N/A
Axos Financial	22.10%	18.67%	1.89%

Valuation and Earnings

This table compares Fifth District Savings Bank and Axos Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fifth District Savings Bank	$9.32 million	7.45	N/A	N/A	N/A
Axos Financial	$1.20 billion	3.18	$450.01 million	$7.44	8.96

Axos Financial has higher revenue and earnings than Fifth District Savings Bank.

Institutional & Insider Ownership

83.8% of Axos Financial shares are owned by institutional investors. 5.1% of Axos Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Axos Financial beats Fifth District Savings Bank on 9 of the 10 factors compared between the two stocks.

About Fifth District Savings Bank

Fifth District Bancorp, Inc. is the holding company for Fifth District Savings Bank which provide all banking services. Fifth District Bancorp, Inc. is based in NEW ORLEANS.

About Axos Financial

Axos Financial, Inc., together with its subsidiaries, provides consumer and business banking products in the United States. It operates through two segments, Banking Business and Securities Business. The company offers deposits products, including consumer and business checking, demand, savings, time deposit, money market, zero balance, and insured cash sweep accounts. It also provides residential single family, multifamily, and commercial mortgage loans; commercial real estate secured loans; commercial and industrial non-real estate, asset-backed, lines of credit, and term loans; automobile loans; fixed rate unsecured loans; and other loans, such as structure settlements, small business administration consumer loans, and securities-backed loans. In addition, the company offers ACH origination, wire transfer, commercial check printing, business bill pay and account transfer; remote deposit capture, mobile deposit, lockbox, merchant, and online payment portal; concierge banking; mobile and text message banking; and payment services, as well as debit and credit cards, and digital wallets. Further, it provides disclosed clearing services; back-office services, such as record keeping, trade reporting, accounting, general back-office support, securities and margin lending, reorganization assistance, and custody of securities; and financing to brokerage customers. The company was formerly known as BofI Holding, Inc. and changed its name to Axos Financial, Inc. in September 2018. Axos Financial, Inc. was incorporated in 1999 and is based in Las Vegas, Nevada.